Groupe PSA, the French maker of cars and motorcycles sold under the Peugeot, Citroën, DS, Opel and Vauxhall brands, is reporting a 10% plunge in global vehicle sales on account of tepid sales volumes in China, the Middle East and Africa.
It said its total consolidated world sales volume shrank to 3.5 million units, down 10% year-on-year. Sales volume for Peugeot plummeted 16.3% while Citroën sales were reduced by 5.1%.
Excluding Iran, the 2019 sales volume for Groupe PSA fell 6.6% from 2018. Excluding Iran, Peugeot sales were 8.8% lower last year compared to the year before. For December 2019, Groupe PSA's total consolidated world sales volume decreased 2.7% from 2018. Peugeot sales volume was down 1.3% while Citroën sales plunged 11.0% year-on-year.
In its home market of Europe, the group's sales were 2.5% lower in 2019 and fell to 3.11 million vehicles. Sales of Opel-Vauxhall vehicles fell 6.4%, the largest among all the group's brands.
DS, the group's premium automobile marque, was the only brand to boost sales globally in 2019 with an increase of 17.4% to 62,512 units. On the other hand, Peugeot saw a sales decline of 16.3%, Citroën lost 5.1% in sales while and Opel Vauxhall gave up 5.9%.
PSA's sales in China fell a massive 55.4% to 117,084 vehicles. Analysts said this paltry number was only a tenth of the ambitious one million-a-year target Groupe PSA had set itself a few years ago. Last month, the group said it plans to sell its 50% stake in the joint venture making DS brand cars in China.
Sales volumes were also down 22.5% in a weak Latin American market and 43.7% in the Middle East-Africa region. The group abandoning Iran on threats of U.S. economic sanctions did not help matters.
Despite these unnerving numbers, Groupe PSA said it "maintained its position (in Europe) by achieving a 16.8% market share in a market that was up a slight 1.3%" helped by an increase in sales of light commercial vehicles (LCVs). In 2018, the group's market share rose 3.8 points versus 2017 to reach 17.1%.
Groupe PSA and Fiat Chrysler Automobiles in December 2019 said they had agreed on a binding merger in a $50 billion deal that will create the world's fourth-largest carmaker.
The European Automobile Manufacturers Association (ACEA) said Volkswagen Group and Renault in the European passenger car market outperformed Groupe PSA in 2019.
